91 Interactions, 8 Today
Solana’s chart trajectory performed a sudden U-turn after securing a new ATH on September 9th. SOL’s value fell progressively below major swing supports as investors locked in their profits. On deeper examination, it was discovered that SOL had entered a discount phase, which threatened to push the price down to certain lows.
SOL was trading at $164.9 at the time of writing and ranked seventh on CoinMarketCap.
Solana Hourly Chart
Charting SOL’s move from late August to a fresh ATH showed a steady uptrend, one which involved several impulsive waves. Naturally, higher highs and highs lows were seen during this period, which is common in a markup phase. However, this trend was overturned once SOL failed to form a fresh higher low and revisited the $151-mark.
At the time of writing, the SOL market appeared to be in a corrective phase, and some further lows can be predicted in the near future. This forecast will be validated if SOL closes below $151 after making some tiny gains. In such a case, SOL would fall towards the $130.6 support level. Further losses are possible from the aforementioned level.
On the contrary, if SOL recovers from $164, there is a probability of a temporary increase. This would result in a breakout from a bull flag pattern, pushing the price towards $180.
SOL’s hourly RSI has remained largely negative since retracing from its ATH. The index oscillated between the mid-line and the lower zone, as is typical in a downturn. The MACD remained weak and below its half-line during this time. Its histogram revealed that the positive momentum that propelled SOL from $151 to $170 was fading at the time of publication.
Furthermore, the Chaikin Money Flow’s direction appeared troubling. Since September 6, the index has generated lower peaks, indicating that capital is being drawn out of the SOL market.
For SOL, the last few weeks have been incredibly bullish. The alt has rocketed into the top 10 on to positive sentiment and favourable on-chain metrics.
However, a corrective phase appeared to have emerged following such a patchy growth. While some improvements are to be expected during this phase, SOL is likely to revisit past lows in the following sessions.